Anti-Powell Crusade Rages On As Housing Sector Demands Fed Chair Resignation

The Federal Reserve's decision on Wednesday to hold interest rates steady at 4.25%-4.50% for the fourth consecutive meeting has triggered an escalating backlash, with both political and industry voices now demanding that Chairman Jerome Powell step down immediately.

What began as a political feud has now widened into a full-blown crusade against Powell, with criticism erupting from sectors hardest hit by high borrowing costs—most vocally, the housing industry.

Housing Industry: ‘Too Late Needs To Resign'

The sharpest rebuke came from Bill Pulte, U.S. Director of Federal Housing Finance Agency and a figure tied to both Fannie Mae and Freddie Mac oversight.

On social media platform X, Pulte launched a barrage of posts accusing Powell of damaging the housing sector by delaying rate cuts.

"Jay Powell is hurting the housing market by being too late to lower rates. He needs to resign, effective immediately," Pulte said.

He added, "Funny thing is Jay Powell is talking right now about the housing market—he has no clue what he can do for it. And he's not listening to the people who help lead it."

Pulte, known for his pro-housing advocacy and ties to homebuilding networks, has emerged as a prominent industry voice urging quicker action from the Fed.

His criticism echoes growing concerns among mortgage lenders, homebuilders and buyers dealing with a 30-year fixed mortgage rate that hovers near 7%.

Markets currently anticipate just two rate cuts by year-end, which would lower the federal funds rate to a range of 3.75% to 4%.

Stocks in the broader housing sector — tracked by the Real Estate Select Sector SPDR Fund XLRE — are trading 20% below their 2022 levels.

Trump Reinforces Attacks On Powell

Just hours before the Fed's June policy decision, President Donald Trump once again tore into Powell, calling for an aggressive rate cut of 2 to 2.5 percentage points.

Trump said such a move would significantly reduce the cost of refinancing U.S. government debt, claiming, "We'd be saving $700 billion, $800 billion—trillions over time."

"He just refuses to lower rates," Trump said. "I don't even think he's political, I think he hates me. He probably should, I call him every name in the book to try and get him to cut."

Trump's criticism comes amid mounting pressure on the central bank to lower rates as inflation cools and economic risks mount. Powell's current term ends in May 2026, but critics now want him out sooner.

The likelihood of Fed Chair Jerome Powell resigning or being removed before his term ends stands at 9%, according to CFTC-regulated betting platform Kalshi.

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